In the early 1900s, New York City tenement buildings were poorly constructed with thin walls and ceilings and bedrooms stacked on top of one another. As the resident on the floor above you would prepare for bed by taking off his shoes, you would hear one shoe drop to the floor. What would come next? The other shoe. One shoe being dropped led to the inevitable subsequent event (and well-known idiom)…the other shoe to drop.
Too many times we live our lives this way: seeing one event (down markets perhaps) and then waiting anxiously for the “other shoe to drop,” an event which we’re certain will be negative. But often, for all our apprehension, that shoe doesn’t drop with a rattling thud – or drop at all.
We should understand that there will always be uncertainties. At times, adjustments will be necessary. However, we don’t need to wait for the other shoe to drop, assuming it will bring greater challenges. It is possible that the inevitable could actually bring more certainty and peace. Even if we can’t stop shoes from dropping, we can prepare and respond with actions we control and priorities we can manage.
These actions could include rebalancing a portfolio subject to volatility; improving our lifestyle habits to enhance our health; engaging in intentional relationships to protect and develop people impacted by challenges; or simply recalling difficult times of the past and appreciating the growth that resulted from them. All of life offers opportunities where we can and should take action to put ourselves in a stronger position to deal with future shoe-drops.
Living reactively, waiting for and wondering when the next shoe may drop, can cost us sleep and rob us of peace and enjoyment. Instead, we encourage living proactively with an understanding of the times and confidence in the actions you can take to create better results longer term.
It is our privilege to provide many investors with a context for the challenges of these times and a perspective on actions they may choose to take in the days ahead. We look forward to providing this assistance to you and hope that it will help you sleep soundly, with no apprehension of what may drop, and every expectation that tomorrow is looking up.
Highland Consulting Associates, Inc. was founded in 1993 with the conviction that companies and individuals could be better served with integrity, impartiality, and stewardship. Today, Highland is 100% owned by a team of owner-associates galvanized around this promise: As your Investor Advocates®, we are Client First. Every Opportunity. Every Interaction.
Highland Consulting Associates, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer of solicitation for the sale or purchase of specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.